Conference Call with Indian Energy Exchange (IEX) Management and Analysts on Q4FY20 and Full Year Earnings Performance. Listen in to the full earnings transcript.
Key Highlights from Rajeev Srivastava, MD and CEO
- Power is a lifeline, and at IEX we recognize this and have a huge responsibility to ensure power on demand and 24/7 supply to all corners of the country, particularly at this point, in healthcare, communication, households and so on.
- Our business continuity plan ensured round the clock operations with seamless connectivity and high levels of security.
- Our automation helped us manage our operations remotely. We could pivot on employee safety as a first instance and priority.
- During the lockdown period power procurement by distribution utilities in Maharashtra, Telengana, UP, Bihar and so on have surged due to attractive costing right now and high availability. Industrial activity as per IIP saw a degrowth of 3% in Q4. Economic activity had begun to show green shoots before Covid hit. On the electricity front Q4 saw demand growth of 1.6%. Jan and Feb saw demand growth on average of 7.7%, but the lockdown drove a decline of 9.2% in March.
- For the first time since FY14 we saw considerable headwinds due to economic growth, industrial growth, commercial demand and weather related patterns.
- Total installed capacity increased by 4%. Renewable grew faster, at 12%. Thermal rose 2%. The much awaited discom relief package - we believe this a welcome step. The discoms will be in a position to pay back. Measures like PFC loans should create much needed liquidity in the power supply chain. On the policy and regulatory front we saw a draft Electricity Bill 2020, that would abolish cross-subsidy charges, and separate authority to regulate disputes, and allow cross border trade. We think this will address several structural challenges we face today.
- For the quarter, IEX reported a 40% YoY electricity volume growth. On the price front there was an overall decline of 14% in Q4 and this drove procurement by customers. On standalone, our PAT for Q4 was up 25% YoY, revenue up 17%. PAT margin was at 59% in Q4.
- IEX reported 3% growth in electricity volumes for the entire year. FY20 consolidated revenue growth was 1% and PAT went up by 6%. PAT margin was up at 59%.
